Realty Bites

Font Size

Print

Feedback

Email

Discuss

: The financial crisis in the international market, high interest rates and inflation have made real estate a tough investment option. Real-estate developers are facing a severe funds crunch in executing projects because of the tightening liquidity condition. The general sentiment among the developers is that at least for the rest of the year someone planning to buy a house is not likely to take a final decision. High interest rates on home loans, uncertainty in the markets and expectations of a drop in prices are likely to contribute to buyers putting off plans. We asked a cross-section of people in the industry to identify the city/cities, which they thought were the best bet to invest in the coming times in terms of residential property. And this is what they had to say:

The top Indian cities in terms of real estate investments are definitely the metros — Mumbai, Chennai and Delhi and emerging metros such as Pune, Hyderabad, Bangalore and Chandigarh. Here too it is largely the established and premium pockets that still see a demand from the buyers. The reason being the existing infrastructure and minimum risk involved in investing in prime areas. With an increasing number of industries and multinationals setting up shop in cities like Pune, Chandigarh and Bangalore, the property markets here continue to provide exciting investment opportunities. The current slowdown in the economy and rising interest rates have resulted in value correction in the Indian property sector. Make safe investments considering the distress caused by apprehension about further decline in property values.

—Bobby Mukherji

Principal Architect, Bobby Mukherji & Associates

Though the sector is facing tough times of late, the ever existing demand for affordable housing will ensure that the sector will bounce back once the conditions improve and sentiments turn positive. A lot still depends on the exact profile of the project within a micro region. Having said that I would still say that it is the right time to buy. An ordinary investor or even end-user should be more watchful than ever while investing in property taking into account factors like work experience of the builder and exact project profile. The best cities to invest would be the ones which have a decent infrastructure, high literacy and high per capita income. These cities would usually be in the states governed by proactive governments. Based on the above premise, the best cities to invest in would be Delhi, Gurgaon, Faridabad, Ludhiana, Jaipur, Mumbai, Pune,

and Chennai.

—Navin M Raheja

Managing Director, Raheja Developers

The real estate market is facing a downslide all over India and this is the best time to invest. One has to just look out for the best deal. Developed projects will be the best and the safest bet. Avoid undeveloped and projects at locations that are not very familiar as many townships and residential projects have been announced in some far-off places.

The best city to invest, according to me is Noida in the near future. It is under priced and undervalued and is one of the best investment options for medium-term investment. Its proximity to Delhi certainly adds to its favour.

—Vidur Bhardwaj

Architect and Managing Partner, Design & Development

For investment purposes, Gurgaon and Mumbai should be in an investors list. Gurgaon, being a part of the NCR is almost the political capital of the country and its residential market has been seeing a meteoric rise in the last few years. The city’s growth was driven not just by residents of Delhi seeking a viable alternative housing option but also from heavy concentration of services driven commercial activity. Mumbai being the financial capital continues to show buoyancy in the residential market. In Mumbai, individual and investor interest in high-grade residential properties are on the increase, leading to a steady growth in the residential property market.

—Manish Periwal

CMD, Pioneer Urban Land & Infrastructure Ltd

One can expect a slowdown in the market for the next 18-24 months. Also, the home loan interest rates may also go up, having a further impact on the global slowdown. But, real estate still remains the preferred choice of investment for most Indians. But seeing the current market scenario, a lot of people are deferring buying decisions. But for the first time buyers, it’s a good time to acquire property. However, in pure investment terms, major metros still remain the safest bet as they will give a decent return on investment in the next three to five years including cities like Hyderabad and Pune. One should have the power to negotiate and try and get the

best deal.

—Vineet Singh

Business Head, 99acers.com

The global action in the markets has been affecting the psyche of the buyer. A short-term investment is not a good option in India as the next three-four months could see a further slowdown. According to me, down south, Chennai is not a bad option to invest at the moment as it is not affected by speculation. Coimbatore on the other hand, is affected by over supply. In the other metro cities, buying decisions are being driven by speculation. Cities like Delhi, Mumbai, Kolkata and Bangalore, lot of people are following the herd mentality while making buying decisions. If one area is seeing some buying, lot of people are going for that property.

—Sanjay Chugh